Quote Originally Posted by Mirage View Post
Backwards compatibility with PS2 wouldn't help anyway, because the PS2 would be emulating the PS2 version of the game, with the same limitations as the game has got on PS2.
VMs (Virtual Machines) use a host system to emulate an OS. They bear all the specs of host specifically tailored by the user to meet their demands and the demands of the OS. Therefore, an emulated system is bound by the host and not restricted by itself. As a result, PS3 could have a VM (or Cloud for you Microsoft Fans) that replicates the OS of the PS2, allowing all PS2 compatibility using the physical hardware of the PS3. I do it all the time to play old PC games, and run FF through my XP VM because it runs smoother.